PUBLISHER: KBV Research | PRODUCT CODE: 1565204
PUBLISHER: KBV Research | PRODUCT CODE: 1565204
The Global Smart Labels Market size is expected to reach $43.5 billion by 2031, rising at a market growth of 15.5% CAGR during the forecast period.
In 2023, North America region held 29% revenue share in the smart label market. This dominance is attributed to the high adoption of advanced technologies, the presence of major industry players, and the increasing demand for efficient supply chain management solutions. North America's retail, healthcare, and logistics sectors have particularly driven the demand for smart labels, leveraging their capabilities for enhanced tracking, inventory management, and product authentication.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2023, Impinj, Inc. took over Voyantic, a provider of radio frequency identification (RFID) testing and measurement solutions. With this acquisition, the company would be able to advance and accelerate design, manufacturing, and testing to drive quality products out into the market. Moreover, in May, 2023, CCL Industries acquired eAgile Inc., a company specializing in RFID technology, along with another intelligent label company. This acquisition aims to strengthen CCL's presence in the smart label market, particularly in RFID-enabled labelling solutions.
KBV Cardinal Matrix - Smart Labels Market Competition Analysis
Based on the Analysis presented in the KBV Cardinal matrix; STMicroelectronics N.V. is the forerunner in the Market. Companies such as NXP Semiconductors N.V., Fujitsu Limited, Avery Dennison Corporation are some of the key innovators in Market. In September, 2021, Avery Dennison completed its acquisition of Vestcom, a prominent provider of retail pricing and promotional solutions. This strategic move is intended to strengthen Avery Dennison's capabilities in the retail and consumer packaging sectors. The acquisition of Vestcom, which specializes in shelf-edge technology and promotional labelling, expands Avery Dennison's reach and enhances its offerings in retail management.
Market Growth Factors
The growing demand for real-time monitoring and visibility in supply chain operations is one of the primary factors driving the smart label market. Efficient inventory management is crucial for maintaining operational effectiveness and customer satisfaction. In conclusion, increasing demand for efficient and transparent supply chain management drives the market's growth.
The surge in digital transformation initiatives across industries leads organizations to seek technology-driven solutions that enhance operational efficiency. Increased investments in digital transformation often involve integrating these labels with existing ERP systems. In conclusion, increased investment in digital transformation initiatives drives the market's growth.
Market Restraining Factors
Implementing smart labels requires significant upfront investment in technology and infrastructure. Businesses need to purchase smart label printers, RFID or NFC readers, and software systems capable of managing the data generated by these labels. In conclusion, the high initial costs and investment required for smart label implementation hamper the market's growth.
Component Outlook
On the basis of component, the smart label market is segmented into transceivers, memories, batteries, microprocessors, and others. In 2023, the transceivers segment attained 23% revenue share in the smart label market. Transceivers are integral to smart labels' functioning, facilitating wireless communication between the label and the reader. This component is crucial for the real-time tracking and monitoring of products, assets, and inventory.
Application Outlook
Based on application, the smart label market is categorized into retail inventory, perishable goods, electronic & IT assets, equipment, pallets tracking, and others. The perishable goods segment witnessed 22% revenue share in the smart label market in 2023. The need to monitor and manage the freshness and quality of perishable items, such as food and pharmaceuticals, has fuelled the demand for smart labels.
Technology Outlook
Based on technology, the smart label market is divided into EAS labels, RFID labels, sensing labels, electronic shelf/dynamic display labels, and near field communication (NFC) tags. The electronic shelf/dynamic display labels segment attained 13% revenue share in the smart label market in 2023. This technology is particularly popular in retail, providing real-time pricing information, promotions, and product details directly on the shelf.
End Use Outlook
By end use, the smart label market is divided into automotive, fast moving consumer goods (FMCG), healthcare & pharmaceutical, logistic, retail, manufacturing, and others. The fast moving consumer goods (FMCG) segment procured 20% revenue share in the smart label market in 2023. Smart labels in the FMCG sector ensure product authenticity, track expiration dates, and enhance supply chain transparency.
Regional Outlook
Region-wise, the smart label market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region generated 39% revenue share in the smart label market in 2023. The rapid growth in this region can be attributed to the burgeoning retail sector, the expansion of the manufacturing industry, and increasing government initiatives supporting the adoption of smart technologies.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global Smart Labels Market Report Segmentation
By Component
By Application
By Technology
By End Use
By Geography